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Ontario Invests Millions to Bolster Forestry Sector
18 Sep
Summary
- Ontario invests over $2.5 million in forestry upgrades across three regional projects.
- Funding aims to protect jobs amid U.S. tariffs and market uncertainties.
- Projects focus on biomass utilization and mill efficiency improvements.
The Ontario government has announced a significant investment of over $2.5 million dedicated to upgrading major forestry operations across the region. This funding, channeled through the province's Forest Biomass Program, aims to fortify the sector against challenges such as U.S. tariffs and market volatility.
Thunder Bay Pulp and Paper is allocated $2.4 million to plan substantial upgrades to its boiler and chemical plant. These improvements are projected to increase kraft production by 11%, creating a substantial annual market for over 130,000 tonnes of forest biomass. This, in turn, is expected to bolster harvesting, hauling, and trucking jobs.
Additional funding includes $92,500 for AUX Energy to develop plans for a biomass-powered generator in Fort Frances and $32,650 for Weyerhaeuser in Kenora to study production line enhancements. These initiatives collectively aim to increase energy security, reduce costs, and improve efficiency, thereby protecting over 700 direct and 3,350 indirect forestry jobs in the region.
The investment arrives amidst a challenging period for the region's forestry industry, with several sawmills having recently announced indefinite shutdowns or idling of operations. Government officials expressed disappointment but noted that sawmills are designed for relatively quick restarts when market conditions improve.
